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Flexible IoT licensing models create new revenue opportunities

How flexible IOT licensing models create new revenue opportunities

Although much of the developments in Internet of Things (IoT) have focused on hardware and connectivity – the things and the internet – it’s actually software in the form of applications, management systems and analytics tools that holds the key to unlocking value from the infrastructure. It is software that is enabling IoT solutions – composed of hardware, connectivity and software – to turn previously unconnected devices into connected devices and enabling monetisable services to be built around those.



IOT GUIDES – Paper by George Malin, editor, IOT Global Network.


IOT LICENSING MODELS – SLIDE DECK – Presentation by Amit Kumar, Senior Sales Engineer, Software Monetization, Gemalo

IOT LICENSING MODELS WHITE PAPER – Flexible licensing models in the Internet of Things By Ansgar Dodt, Gemalto


In the world of hardware, software has become critically important. Devices from the tiniest of sensors to enormous machinery have become software-based, and billions of these “intelligent” devices are expected to become connected to the sprawling Internet of Things (IoT) ecosystem within the next few years.

The connectivity of these IoT devices created new levels of risk for hardware manufacturers; protecting IP from theft, piracy, misuse and reverse-engineering (cornerstones of software monetization) have become significant priorities for device manufacturers. IoT did more than create new risks; it created new opportunities. Connectivity enabled manufacturers to embrace new business models, enable customer self-service and monitor usage. Connected devices enable manufacturers to digitally deliver software and manage user entitlements, eliminating manual operational tasks and costs associated with licensing, in turn, helping them introduce new products and features faster and more easily.


Intelligent device manufacturers could see that one-size-fits-all licensing was no longer enough to remain competitive and started to look for ways to deliver rich customer experiences while creating revenue opportunities. They can learn from the software vendors that have successfully implemented software monetization best practices to secure and drive revenue from their IP.

IoT connectivity is a path to delivering new experiences via software and hardware that’s already in the field. Feature-based and flexible IOT licensing models and entitlement management enables device manufacturers to ship the same product with different functionality to different customers at varying price points, and the products can be upgraded remotely. Also, field upgradeability replaces the one-and-done product mentality of the past and reduces the impact of obsolescence. Additionally, with flexible software-based licensing solutions, customers can use just the features they want, turn them on and off themselves and pay only for what they use.

By offering alternative models to new customers, many intelligent hardware manufacturers have found that they’re able to tap into new markets. The rise of connected intelligent devices enables hardware manufacturers to deliver better user experiences by improving customer provisioning and onboarding, while allowing them to implement new business models including subscriptions and pay-per-use.

The post Flexible IoT licensing models create new revenue opportunities appeared first on B2B Labs.

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Known for wearing plaid and sweater vests before they were popular, Ben Bradley is managing director of Macon Raine, Inc. ( - a management consulting, marketing and demand generation firm for technology organizations. He is a graduate of the University of Iowa and was a member of the undergraduate Iowa Writer’s Workshop. His interests include the intersection of technology and marketing. Because he was never very good at sports and doesn’t have many hobbies, his primary interests include the role of marketing on internal technology adoption, micro-finance, military uses of technology and media, self-organizing networks, network and physical security, collaboration and groupware. He frequently lectures his children on a variety of topics. Bradley was raised in Wheaton, Illinois and currently resides in Glen Ellyn, Illinois with his wife, two children and a purebred Latvian Goathound named Stella.